US president Donald Trump walks from the podium after speaking about Iran from the Diplomatic Reception Room at the White House in Washington, on October 13, 2017. Susan Walsh / The Associated Press
US president Donald Trump walks from the podium after speaking about Iran from the Diplomatic Reception Room at the White House in Washington, on October 13, 2017. Susan Walsh / The Associated Press

Trump’s Iran strategy: a bluster or long-term plan?



US president Donald Trump’s speech announcing a new US policy to counter the “fanatical regime” of Iran and its “sinister vision for the future” was not only short on detail but also undermined a few days later when Iranian proxies advanced in Iraq under America’s nose and vast air presence.

In the speech on Friday, Mr Trump called for new international sanctions on Iran and threw the landmark nuclear agreement between Tehran and world powers into doubt. The same day, the US treasury department announced new, wide-ranging American sanctions targeting Iran’s Islamic Revolutionary Guard Corps (IRGC).

While former US officials said this new Iran strategy needed clarification, those within the Trump administration insisted there was a long-term action plan to roll back Tehran’s influence.

It comes amid increased reports of a split within the administration between a weakened secretary of state, Rex Tillerson, and Mr Trump’s “Iran whisperer”, US ambassador to the UN Nikki Haley.

Rhetoric or policy?

Elliot Abrams, who served in foreign policy positions for former presidents Ronald Reagan and George W Bush, said Mr Trump’s “rhetoric is tough, but I don’t see yet a coherent policy in dealing with Iran in Syria and Iraq”.

Just two days after Mr Trump's speech and the announcement of new US sanctions against the IRGC, Iran's General Qassem Suleimani - who heads the Quds Force, the IRGC unit responsible for operations abroad - was in Iraqi Kurdistan for talks with Kurdish officials amid an escalating crisis between the Kurds and Baghdad. Just a day later, Iraqi security forces and Iran-backed Shiite militias retook the oil-rich city of Kirkuk from Kurdish forces.

Mr Trump said on Monday that the US will not take sides in the conflict between Baghdad and Erbil, the capital of Iraqi Kurdistan. But it was images of Abu Mahdi Al Muhandis, the deputy head of the Iran-backed Popular Mobilisation Forces (Hashed Al Shaabi) umbrella militia group, marching in Kirkuk that exposed deep cracks in the US strategy on Iran.

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Read more: Arab countries welcome Trump’s ‘firm’ speech on Iran

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Abu Mahdi Al Muhandis was in 2009 designated by the US as a terrorist for his involvement in attacks against the American and French embassies in Kuwait in the 1980s.

Jon Alterman, director of the Middle East programme at the Center for Strategic and International Studies, said the US administration must make “hard decisions”.

"The US has to decide on what kind of Iranian presence in Syria is acceptable long-term and what the US is willing to do about it," he told The National.

Calling Iran a threat is neither news nor strategy, he added.

A former US official himself, Mr Alterman spoke of a conflict between the reality of the IRGC's activity in the Middle East and policy designations in Washington.

“The IRGC doesn’t fit neatly in categories that the US has; it is involved in terror, business, investment, military activities … It does all of that,” he said.

Mr Abrams, currently a senior fellow for Middle Eastern studies at the Council on Foreign Relations, said the IRGC’s wide network means the US needs a strategy “with a military component” to tackle it.

He advocated a two-pronged strategy in Syria that would “support Sunni and Kurdish forces that are neither jihadist nor under Iranian and Russian control”.

The strategy would also highlight US support for Israel by “drawing and enforcing a red line against the Assad regime and Hizbollah”, he added.

Play the long game

However, according to one US official, who spoke on condition of anonymity, there is already a strategy to counter Iran in place.

He said officials from the departments of defence, state, intelligence and the treasury, along with the White House, have put together a comprehensive strategy to tackle Iran’s destabilising activities in Iraq, Syria, GCC and Yemen.

Nicholas Heras, a fellow at the Center for a New American Security, said the Trump administration is “playing the long game in Iraq and, likely, Syria” rather than giving a free pass to the IRGC and Gen Suleimani.

In Iraq, the US wants “to be in a position to be able to keep military forces in the country to balance Iran’s influence”, he said. “In order to play that game, Washington is seeking to empower Iraqi prime minister Haider Al Abadi, to facilitate his support for a residual US military presence.”

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Read more: US ‘very concerned’ over Kirkuk, McCain warns of ‘severe consequences’

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Mr Heras said the US reaction to the Kirkuk situation can be explained as the Trump team “taking a calculated risk that allows Mr Abadi to reassert Baghdad's authority in Kirkuk, and then [Mr Al Abadi] emerges from the situation more empowered and able to credibly stare down resistance to a continuing US role in Iraq”.

In Syria, the Trump strategy is built on “holding onto territory conquered from ISIL, and to use it as a base to prevent the re-emergence of the group”, he said.

Mr Heras added: “[The] US military can set up shop in Syria, at a low troop presence, for years to come until a final framework has been established to end that country's war.”

A split administration

Complicating the US strategy on Iran is the split in rhetoric and views within the Trump administration.

In the same week that Mr Trump announced his strategy, a US senator suggested that the president’s tweets and foreign policy comments “castrate” Mr Tillerson’s diplomatic efforts.

Meanwhile, a Politico report said Ms Haley was the president's "Iran whisperer", as his speech was closer in language and tone to her statements at the American Enterprise Institute in September. Mr Trump's speech also contradicted Mr Tillerson's comments that the US was not looking to terminate the international nuclear agreement with Tehran.

“It is clear that the president’s speech resisted the state department and defence department policy,” said Mr Abrams, adding that the Trump-Tillerson differences “probably mean that he (Mr Trump) is not going to rely on Mr Tillerson’s advice but will give him instructions instead”.

Another factor weakening Mr Tillerson’s position is the lack of staffing in the state department. Critical positions that deal with Iran, such as undersecretary for political affairs and assistant secretary for near east affairs, have not been filled by permanent appointments.

“Who will negotiate?” said Mr Abrams, adding that there should be a US special envoy to handle the Iran file.

Mr Alterman said the US secretary of state was struggling to “find comfort” in the administration.

The New York Times reported on Tuesday that Mr Tillerson rolls his eyes in meetings with the US president, while other reports have suggested that Mr Tillerson will be replaced by either Ms Haley or CIA director Mike Pompeo.

“Ms Haley is a politician who doesn’t care deeply about substance and is looking for a deal inside the administration,” said Mr Alterman. “She knows how to talk to the president and, arguably, because she is a politician.”

Still, absent of a strategy with clear components on Iran, both Mr Abrams and Mr Alterman agree that the game of musical chairs may not have much impact on policy.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

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The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

What you as a drone operator need to know

A permit and licence is required to fly a drone legally in Dubai.

Sanad Academy is the United Arab Emirate’s first RPA (Remotely Piloted Aircraft) training and certification specialists endorsed by the Dubai Civil Aviation authority.

It is responsible to train, test and certify drone operators and drones in UAE with DCAA Endorsement.

“We are teaching people how to fly in accordance with the laws of the UAE,” said Ahmad Al Hamadi, a trainer at Sanad.

“We can show how the aircraft work and how they are operated. They are relatively easy to use, but they need responsible pilots.

“Pilots have to be mature. They are given a map of where they can and can’t fly in the UAE and we make these points clear in the lectures we give.

“You cannot fly a drone without registration under any circumstances.”

Larger drones are harder to fly, and have a different response to location control. There are no brakes in the air, so the larger drones have more power.

The Sanad Academy has a designated area to fly off the Al Ain Road near Skydive Dubai to show pilots how to fly responsibly.

“As UAS technology becomes mainstream, it is important to build wider awareness on how to integrate it into commerce and our personal lives,” said Major General Abdulla Khalifa Al Marri, Commander-in-Chief, Dubai Police.

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